Figure 5-3

-Refer to Figure 5-3.If price falls within the C range of the demand curve we can expect total revenue to
A)increase.
B)decrease.
C)stay the same.
D)This determination cannot be made without further information.

Question

Figure 5-3
 
-Refer to Figure 5-3.If price falls within the C range of the demand curve we can expect total revenue to
A)increase. 
B)decrease. 
C)stay the same. 
D)This determination cannot be made without further information.

Quizplus · Accepted Answer

In the C range of the demand curve, the price elasticity of demand is high, meaning that a change in price will significantly affect the quantity demanded. Therefore, if price falls within this range, we can expect a decrease in total revenue.

Figure 5-3 -Refer to Figure 5-3.If Price Falls Within the C Range